ALFABS AUSTRALIA (ASX:AAL) Interest Coverage : 13.46 (As of Dec. 2024)

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What is ALFABS AUSTRALIA Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. ALFABS AUSTRALIA's Operating Income for the six months ended in Dec. 2024 was A$7.78 Mil. ALFABS AUSTRALIA's Interest Expense for the six months ended in Dec. 2024 was A$-0.58 Mil. ALFABS AUSTRALIA's interest coverage for the quarter that ended in Dec. 2024 was 13.46. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for ALFABS AUSTRALIA's Interest Coverage or its related term are showing as below:

ASX:AAL' s Interest Coverage Range Over the Past 10 Years
Min: 11.4 Med: 11.4 Max: 12.23
Current: 12.23

ASX:AAL's Interest Coverage is ranked better than
68.54% of 426 companies
in the Conglomerates industry
Industry Median: 5.065 vs ASX:AAL: 12.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ALFABS AUSTRALIA Interest Coverage Historical Data

The historical data trend for ALFABS AUSTRALIA's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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ALFABS AUSTRALIA Interest Coverage Chart

ALFABS AUSTRALIA Annual Data

Trend

Jun24

Interest Coverage

11.40

ALFABS AUSTRALIA Semi-Annual Data
	Dec23	Jun24	Dec24
Interest Coverage	12.20	10.36	13.46

Competitive Comparison of ALFABS AUSTRALIA's Interest Coverage

For the Conglomerates subindustry, ALFABS AUSTRALIA's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

ALFABS AUSTRALIA's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's Interest Coverage distribution charts can be found below:

* The bar in red indicates where ALFABS AUSTRALIA's Interest Coverage falls into.

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ALFABS AUSTRALIA Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

ALFABS AUSTRALIA's Interest Coverage for the fiscal year that ended in Jun. 2024 is calculated as

Here, for the fiscal year that ended in Jun. 2024, ALFABS AUSTRALIA's Interest Expense was A$-0.88 Mil. Its Operating Income was A$10.05 Mil. And its Long-Term Debt & Capital Lease Obligation was A$8.20 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jun. 2024 )	/	Interest Expense (A: Jun. 2024 )
	=	-1	*	10.047	/	-0.881
	=	11.40

ALFABS AUSTRALIA's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, ALFABS AUSTRALIA's Interest Expense was A$-0.58 Mil. Its Operating Income was A$7.78 Mil. And its Long-Term Debt & Capital Lease Obligation was A$6.68 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	7.779	/	-0.578
	=	13.46

The higher the ratio, the stronger the company's Financial Strength is.

ALFABS AUSTRALIA (ASX:AAL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

ALFABS AUSTRALIA Interest Coverage Related Terms

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ALFABS AUSTRALIA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » ALFABS AUSTRALIA Ltd (ASX:AAL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

152 Mitchell Avenue, Kurri Kurri, Cessnock, NSW, AUS, 2327

Website

https://www.alfabs.com.au

ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment which derives maximum revenue for the company is engaged in the manufacture, repair, overhaul servicing, and hire of underground mining and ancillary equipment together with sales of mining-related consumables and spare parts. The Engineering segment is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses including protective coatings and transport.